1

Outcome of Conditional Grants & Capital Expenditure as at

30 November 2005[Section 40(4) of PFMA]

Select Committee on Finance

National Council of Provinces

Presented by:Chris AdamsIntergovernmental RelationsNational Treasury

17 January 2006

2

National Treasury’s Role

• National Treasury dev. Culture of publishing information• Assessing credibility of prov. Budgets• Ensure that each treasury prepares quarterly reports for its cabinet or exco.• NT prepares a consolidated quarterly report for all provinces.

3

Key highlights

• Presentation covers provincial spending for the first 8 months (1 April to 30 November 2005) of 2005/06 financial year

• Spending is at R136bn (62,1%) of adjusted budget (R219,2bn)

• The highest rate of spending is in KZN (63,2%); NC and MPU (63,1%)

• Lowest in FS & GT (60,8%)

4

Provincial Aggregated ExpenditureTable 2: Provincial Aggregated Budgets and Expenditure as at November 2005

Eastern Cape 34 500 746 34 300 109 21 743 536 63,0% – 200 637 0,6% 16,0% 1 123 212 20 620 324 5,4%

Free State 15 062 118 14 693 465 9 150 615 60,8% – 368 653 2,4% 6,7% 830 425 8 320 190 10,0%

Gauteng 34 383 619 34 297 364 20 920 207 60,8% – 86 255 0,3% 15,4% 1 867 477 19 052 730 9,8%

Kw aZulu-Natal 45 891 813 46 512 715 29 000 865 63,2% -620 902 – -1,4% 21,3% 3 769 638 25 231 227 14,9%

Limpopo 28 681 412 29 136 345 17 682 066 61,6% -454 933 – -1,6% 13,0% 1 905 413 15 776 652 12,1%

Mpumalanga 15 882 730 15 728 135 10 026 569 63,1% – 154 595 1,0% 7,4% 1 855 953 8 170 616 22,7%

Northern Cape 5 319 879 5 277 368 3 358 807 63,1% – 42 511 0,8% 2,5% 424 522 2 934 285 14,5%

North West 18 232 414 18 069 067 11 101 498 60,9% – 163 347 0,9% 8,2% 1 351 388 9 750 110 13,9%

Western Cape 21 211 319 21 116 996 13 056 806 61,6% – 94 323 0,4% 9,6% 1 801 387 11 255 418 16,0%

Total 219 166 050 219 131 564 136 040 968 62,1% -1 075 835 1 110 321 0,0% 100,0% 14 929 416 121 111 552 12,3%

Net 34 486

R thousand

Adjusted budget

Projected Outcomes

Actual as at November

2005

Actual as % of adj budget

(Over) Under

% (Over) / under of

adj budget

% share of total

provincial expenditure

Difference 2004/05 vs

2005/06

2004/05: Actual as at November

2004

Year-on-year

growth

5

Key highlights

• Spending in social services sectors:

- Education at R46,7bn (64,6%)

- Health at R29,4bn (62,3%)

- Social Development R37,4bn (62,8%)

• Personnel spending at R63,3bn (65,4%)

• Capital expenditure is at R6,6bn (47,2%)

6

Provincial Aggregated ExpenditureTable 1: Provincial Aggregated Budgets and Expenditure as at November 2005

Current payments

Transfers and

subsidies

Payments for capital

assetsTotal

Current payments

Transfers and

subsidies

Payments for capital

assetsTotal

Eastern Cape 19 920 422 12 958 129 1 622 195 34 500 746 12 530 742 8 272 435 940 359 21 743 536

Free State 9 211 277 5 165 651 685 190 15 062 118 5 796 221 3 091 479 262 915 9 150 615

Gauteng 20 939 788 11 359 715 2 084 116 34 383 619 13 293 662 6 677 382 949 163 20 920 207

Kw aZulu-Natal 27 070 314 15 283 168 3 538 331 45 891 813 17 503 507 9 807 809 1 689 549 29 000 865

Limpopo 17 910 953 9 174 298 1 596 161 28 681 412 11 171 952 5 928 813 581 300 17 682 066

Mpumalanga 9 862 175 4 709 498 1 311 057 15 882 730 6 364 422 2 904 598 757 549 10 026 569

Northern Cape 3 217 107 1 754 211 348 561 5 319 879 2 073 549 1 139 476 145 782 3 358 807

North West 10 847 352 6 169 465 1 215 597 18 232 414 6 743 681 3 886 397 471 420 11 101 498

Western Cape 13 129 217 6 540 285 1 541 817 21 211 319 8 232 820 4 044 634 779 352 13 056 806

Total 132 108 605 73 114 420 13 943 025 219 166 050 83 710 556 45 753 023 6 577 389 136 040 968

R thousand

Adjusted budget 2005/06 Actual as at November 2005

7

• Social services adjusted budgets at R178,9bn - 81,6% of total provincial budgets (education, health, social development)

• Provinces have spent R113,5bn or 63,4%– R12,3bn or 12,1 % more compared to last year

• Spending accounts for 83,4% of total provincial spending – Education at 34,3%,

– Health at 21,6%

– Social Development at 27,5%

• NC (65,2%), KZN (64,7%) records the highest rate of spending while FS (62%) and GT (62,1%) the lowest

Social Services

8

Table 3: Provincial Social Services Expenditure as at November 2005

Education 72 215 413 73 049 532 46 665 304 64,6% -834 119 – -1,2% 34,3% 41,1% 42 142 328 10,7%

Health 47 148 109 47 109 432 29 380 826 62,3% – 38 677 0,1% 21,6% 25,9% 25 456 180 15,4%

Social Development 59 544 153 58 572 124 37 405 694 62,8% – 972 029 1,6% 27,5% 33,0% 33 590 138 11,4%

Total 178 907 675 178 731 089 113 451 824 63,4% -834 119 1 010 705 0,1% 83,4% 100,0% 101 188 646 12,1%

Net 176 586

% share of total

provincial expenditure

% share of total Social

Services expenditure

2004/05: Actual as at November

2004

Year-on-year

growth

Actual as % of adj budget

(Over) Under

% (Over) / under of

adj budget

R thousand

Adjusted budget

Projected Outcomes

Actual as at November

2005

Table 4: Provincial Social Services Expenditure as at November 2005

Eastern Cape 28 870 593 28 703 435 18 480 952 64,0% – 167 158 0,6% 85,0% 49,1% 17 159 713 7,7%

Free State 12 562 116 12 227 552 7 788 222 62,0% – 334 564 2,7% 85,1% 50,6% 6 999 174 11,3%

Gauteng 28 311 716 27 960 713 17 574 163 62,1% – 351 003 1,2% 84,0% 49,8% 15 980 213 10,0%

Kw aZulu-Natal 38 189 989 38 783 264 24 721 882 64,7% -593 275 – -1,6% 85,2% 48,2% 21 930 151 12,7%

Limpopo 22 877 937 23 325 277 14 436 547 63,1% -447 340 – -2,0% 81,6% 54,4% 12 917 126 11,8%

Mpumalanga 12 727 417 12 626 638 8 076 513 63,5% – 100 779 0,8% 80,6% 47,9% 6 569 750 22,9%

Northern Cape 4 122 649 4 112 673 2 686 515 65,2% – 9 976 0,2% 80,0% 45,5% 2 326 522 15,5%

North West 14 030 346 13 866 999 8 835 048 63,0% – 163 347 1,2% 79,6% 51,5% 7 976 388 10,8%

Western Cape 17 214 912 17 124 538 10 851 982 63,0% – 90 374 0,5% 83,1% 49,8% 9 329 609 16,3%

Total 178 907 675 178 731 089 113 451 824 63,4% -1 040 615 1 217 201 0,1% 83,4% 49,9% 101 188 646 12,1%

Net 176 586

R thousand

Adjusted budget

Projected Outcomes

Actual as at November

2005

Actual as % of adj budget

(Over) Under

% (Over) / under of

adj budget

% share of Social

Services to total

provincial expenditure

% share of Social

Services personnel

to total Social

2004/05: Actual as at November

2004

Year-on-year

growth

9

Health

• Spending at R29,4bn or 62,3% against R47,1bn adjusted budget

– Increase of R3,9bn or 15,4% compared to the previous year

– Lowest rate of health spending in LIM (55,6%) and GT (61,6%)

– NC (66,1%) and MPU (65,5%) reflects the highest rate of spending in health

• Health Personnel spending at R16,7bn or 65,2% (R25,6bn adjusted budget)

• Capital spending at R1,7bn or 42,1%

– Increase of 59,9% compared to spending for the same period last year

• Lowest rate of capital spending in LIM (27,9%) and FS (35,3%)

• MPU (58,4%) and KZN (49%) reflects the highest rate of capital spending in health

10

Health

Table 9: Provincial Health Expenditure as at November 2005

Eastern Cape 6 212 887 6 212 887 4 033 125 64,9% – – 0,0% 18,5% 21,8% 3 569 106 13,0%

Free State 3 118 328 3 110 676 2 019 352 64,8% – 7 652 0,2% 22,1% 25,9% 1 839 710 9,8%

Gauteng 9 840 640 9 840 814 6 058 236 61,6% -174 – 0,0% 29,0% 34,5% 5 161 793 17,4%

Kw aZulu-Natal 10 424 516 10 303 631 6 588 374 63,2% – 120 885 1,2% 22,7% 26,6% 5 734 178 14,9%

Limpopo 5 097 869 5 077 466 2 836 480 55,6% – 20 403 0,4% 16,0% 19,6% 2 594 777 9,3%

Mpumalanga 2 652 522 2 770 745 1 736 482 65,5% -118 223 – -4,5% 17,3% 21,5% 1 354 280 28,2%

Northern Cape 1 037 813 1 072 934 686 335 66,1% -35 121 – -3,4% 20,4% 25,5% 530 389 29,4%

North West 2 986 712 2 986 712 1 847 950 61,9% – – 0,0% 16,6% 20,9% 1 604 108 15,2%

Western Cape 5 776 822 5 733 567 3 574 492 61,9% – 43 255 0,7% 27,4% 32,9% 3 067 839 16,5%

Total 47 148 109 47 109 432 29 380 826 62,3% -153 518 192 195 0,1% 21,6% 25,9% 25 456 180 15,4%

Net 38 677

R thousand

Adjusted budget

Projected Outcomes

Actual as at November

2005

Actual as % of adj budget

(Over) Under

% (Over) / under of

adj budget

% share of Health to

total provincial

expenditure

% share of Health to

total Social serv

expenditure

2004/05: Actual as at November

2004

Year-on-year

growth

11

Health – Programme Analyses

Prog 2 - Prov Dist Health Services- Spending at R11,7bn or 63,9% of R18,2bn adjusted budget.- Lowest rate of spending in NC (57,8%) and highest in MP (67,4%)

Prog 4 - Prov Hospital Services- Spending at R7,7bn or 65,6% of R11,7bn adjusted budget.- Lowest rate of spending in KZN (61,1%) and highest in FS (73,7%)

Prog 5 - Central Hospital Services- Spending at R5,1bn or 65,1% of R7,8bn adjusted budget.- Lowest rate of spending in LIM (57,9%) and highest in FS (72,5%)

However Prog 8 – Health Facilities Management shows highest overspending of R208m while spending R1,5bn (44%) of R3,2bn budget.

12

Provincial District Health Services (Programme 2)

Table 10: Provincial District Health Services Expenditure (Programme 2) as at November 2005

Eastern Cape 2 840 602 2 817 442 1 899 547 66,9% – 23 160 0,8% 8,7% 47,1% 1 755 656 8,2%

Free State 1 181 133 1 090 654 702 178 59,4% – 90 479 7,7% 7,7% 34,8% 647 853 8,4%

Gauteng 2 230 555 2 217 760 1 325 165 59,4% – 12 795 0,6% 6,3% 21,9% 1 131 192 17,1%

Kw aZulu-Natal 4 655 765 4 633 765 3 064 563 65,8% – 22 000 0,5% 10,6% 46,5% 2 777 454 10,3%

Limpopo 2 361 452 2 362 835 1 482 669 62,8% -1 383 – -0,1% 8,4% 52,3% 1 316 218 12,6%

Mpumalanga 1 312 849 1 410 460 884 900 67,4% -97 611 – -7,4% 8,8% 51,0% 871 728 1,5%

Northern Cape 434 342 405 344 251 056 57,8% – 28 998 6,7% 7,5% 36,6% 211 349 18,8%

North West 1 569 716 1 569 716 1 018 980 64,9% – – 0,0% 9,2% 55,1% 872 491 16,8%

Western Cape 1 640 479 1 649 725 1 026 957 62,6% -9 246 – -0,6% 7,9% 28,7% 809 865 26,8%

Total 18 226 893 18 157 701 11 656 015 63,9% -108 240 177 432 0,4% 8,6% 39,7% 10 393 806 12,1%

Net 69 192

R thousand

Adjusted budget

Projected Outcomes

Actual as at November

2005

Actual as % of adj budget

(Over) Under

% (Over) / under of

adj budget

% share of DHS to total provincial

expenditure

% share of DHS to total

Health expenditure

2004/05: Actual as at November

2004

Year-on-year

growth

13

Provincial Hospital Services (Programme 4)

Table 11: Provincial Hospital Services Expenditure (Programme 4) as at November 2005

Eastern Cape 1 941 039 1 964 199 1 377 758 71,0% -23 160 – -1,2% 6,3% 34,2% 1 200 825 14,7%

Free State 803 420 881 595 591 925 73,7% -78 175 – -9,7% 6,5% 29,3% 536 573 10,3%

Gauteng 2 649 352 2 641 368 1 703 897 64,3% – 7 984 0,3% 8,1% 28,1% 1 559 249 9,3%

Kw aZulu-Natal 2 916 262 2 916 262 1 781 805 61,1% – – 0,0% 6,1% 27,0% 1 607 840 10,8%

Limpopo 602 121 623 409 392 205 65,1% -21 288 – -3,5% 2,2% 13,8% 330 856 18,5%

Mpumalanga 389 006 398 207 263 619 67,8% -9 201 – -2,4% 2,6% 15,2% 235 779 11,8%

Northern Cape 291 233 292 237 194 321 66,7% -1 004 – -0,3% 5,8% 28,3% 170 870 13,7%

North West 781 350 781 350 507 832 65,0% – – 0,0% 4,6% 27,5% 427 385 18,8%

Western Cape 1 288 031 1 288 031 837 272 65,0% – – 0,0% 6,4% 23,4% 761 876 9,9%

Total 11 661 814 11 786 658 7 650 634 65,6% -132 828 7 984 -1,1% 5,6% 26,0% 6 831 253 12,0%

Net -124 844

R thousand

Adjusted budget

Projected Outcomes

Actual as at November

2005

Actual as % of adj budget

(Over) Under

% (Over) / under of

adj budget

% share of PHS to total provincial

expenditure

% share of PHS to total

Health expenditure

2004/05: Actual as at November

2004

Year-on-year

growth

14

Central Hospital Services(Programme 5)

Table 12: Central Hospital Services Expenditure (Programme 5) as at November 2005

Free State 518 219 565 076 375 774 72,5% -46 857 – -9,0% 4,1% 18,6% 315 768 19,0%

Gauteng 3 442 170 3 467 196 2 215 488 64,4% -25 026 – -0,7% 10,6% 36,6% 1 971 035 12,4%

Kw aZulu-Natal 1 024 735 1 024 735 713 451 69,6% – – 0,0% 2,5% 10,8% 637 975 11,8%

Limpopo 453 435 454 366 262 420 57,9% -931 – -0,2% 1,5% 9,3% 276 413 -5,1%

Mpumalanga 376 897 389 265 251 274 66,7% -12 368 – -3,3% 2,5% 14,5% – 0,0%

Western Cape 1 963 483 1 963 483 1 243 662 63,3% – – 0,0% 9,5% 34,8% 1 160 444 7,2%

Total 7 778 939 7 864 121 5 062 069 65,1% -85 182 – -1,1% 3,7% 17,2% 4 361 635 16,1%

Net -85 182

R thousand

Adjusted budget

Projected Outcomes

Actual as at November

2005

Actual as % of adj budget

(Over) Under

% (Over) / under of

adj budget

% share of CHS to total provincial

expenditure

% share of CHS to total

Health expenditure

2004/05: Actual as at November

2004

Year-on-year

growth

15

Provincial Health – Personnel

Table 13: Provincial Personnel Expenditure: Health as at November 2005

Eastern Cape 3 470 900 3 447 473 2 256 532 65,0% – 23 427 0,7% 10,4% 55,9% 2 140 067 5,4%

Free State 1 802 047 1 853 184 1 230 873 68,3% -51 137 – -2,8% 13,5% 61,0% 1 109 855 10,9%

Gauteng 4 870 199 4 859 410 3 087 773 63,4% – 10 789 0,2% 14,8% 51,0% 2 882 679 7,1%

Kw aZulu-Natal 5 885 619 5 885 619 3 833 830 65,1% – – 0,0% 13,2% 58,2% 3 526 831 8,7%

Limpopo 2 862 882 2 858 898 1 877 347 65,6% – 3 984 0,1% 10,6% 66,2% 1 695 780 10,7%

Mpumalanga 1 378 726 1 473 816 950 824 69,0% -95 090 – -6,9% 9,5% 54,8% 817 014 16,4%

Northern Cape 528 014 517 461 341 600 64,7% – 10 553 2,0% 10,2% 49,8% 307 710 11,0%

North West 1 705 342 1 705 342 1 157 302 67,9% – – 0,0% 10,4% 62,6% 1 028 637 12,5%

Western Cape 3 111 282 3 028 074 1 956 554 62,9% – 83 208 2,7% 15,0% 54,7% 1 859 988 5,2%

Total 25 615 011 25 629 277 16 692 635 65,2% -146 227 131 961 -0,1% 12,3% 56,8% 15 368 561 8,6%

Net -14 266

R thousand

Adjusted budget

Projected Outcomes

Actual as at November

2005

Actual as % of adj budget

(Over) Under

% (Over) / under of

adj budget

% share of Health

Personnel to total

provincial expenditure

% share of Health

personnel to total Health

expenditure

2004/05: Actual as at November

2004

Year-on-year

growth

16

Provincial Health – NPNC

Table 14: Provincial Non-Personnel, Non-Capital Expenditure: Health as at November 2005

Eastern Cape 2 258 043 2 280 238 1 571 740 69,6% -22 195 – -1,0% 7,2% 39,0% 1 136 918 38,2%

Free State 1 061 033 1 062 711 698 325 65,8% -1 678 – -0,2% 7,6% 34,6% 619 696 12,7%

Gauteng 4 123 345 4 143 862 2 621 861 63,6% -20 517 – -0,5% 12,5% 43,3% 2 220 894 18,1%

Kw aZulu-Natal 3 506 945 3 507 060 2 248 735 64,1% -115 – 0,0% 7,8% 34,1% 1 986 625 13,2%

Limpopo 1 728 898 1 723 402 817 977 47,3% – 5 496 0,3% 4,6% 28,8% 690 810 18,4%

Mpumalanga 1 008 398 1 023 551 630 791 62,6% -15 153 – -1,5% 6,3% 36,3% 503 360 25,3%

Northern Cape 354 682 409 945 284 344 80,2% -55 263 – -15,6% 8,5% 41,4% 189 482 50,1%

North West 1 074 280 1 074 280 606 789 56,5% – – 0,0% 5,5% 32,8% 475 024 27,7%

Western Cape 2 312 792 2 395 906 1 477 825 63,9% -83 114 – -3,6% 11,3% 41,3% 1 183 107 24,9%

Total 17 428 416 17 620 955 10 958 387 62,9% -198 035 5 496 -1,1% 8,1% 37,3% 9 005 916 21,7%

Net -192 539

R thousand

Adjusted budget

Projected Outcomes

Actual as at November

2005

Actual as % of adj budget

(Over) Under

% (Over) / under of

adj budget

% share of NPNC to

total provincial

expenditure

% share of NPNC to

total Health expenditure

2004/05: Actual as at November

2004

Year-on-year

growth

17

• Provincial personnel spending totalled R63,3bn or 65,4% of R96,7bn personnel adjusted budgets

– Increase of 9,1% or R5,3bn over comparative spending last year

• Projecting to overspend by R223,6m

• Lowest level of personnel spending in GT (63,4%) and WC (63,6%)

• LIM (68,5%) and NW (66%) reflects the highest level of personnel spending

Personnel

18

Personnel

Table 19: Provincial Personnel Expenditure as at November 2005

Eastern Cape 15 380 485 15 348 101 10 110 023 65,7% – 32 384 0,2% 46,5% 16,0% 9 540 386 6,0%

Free State 6 941 330 6 945 178 4 489 920 64,7% -3 848 – -0,1% 49,1% 7,1% 4 121 234 8,9%

Gauteng 14 972 917 14 942 189 9 497 141 63,4% – 30 728 0,2% 45,4% 15,0% 8 758 548 8,4%

Kw aZulu-Natal 19 799 703 19 808 806 12 982 073 65,6% -9 103 – 0,0% 44,8% 20,5% 11 839 493 9,7%

Limpopo 13 314 031 13 671 732 9 115 240 68,5% -357 701 – -2,7% 51,6% 14,4% 8 278 937 10,1%

Mpumalanga 6 798 023 6 847 664 4 460 662 65,6% -49 641 – -0,7% 44,5% 7,0% 3 932 073 13,4%

Northern Cape 2 205 411 2 203 407 1 425 842 64,7% – 2 004 0,1% 42,5% 2,3% 1 296 162 10,0%

North West 8 035 654 8 021 956 5 304 131 66,0% – 13 698 0,2% 47,8% 8,4% 4 813 428 10,2%

Western Cape 9 272 057 9 154 174 5 901 151 63,6% – 117 883 1,3% 45,2% 9,3% 5 424 450 8,8%

Total 96 719 611 96 943 207 63 286 182 65,4% -420 293 196 697 -0,2% 46,5% 100,0% 58 004 711 9,1%

Net -223 596

R thousand

Adjusted budget

Projected Outcomes

Actual as at November

2005

Actual as % of adj budget

(Over) Under

% (Over) / under of

adj budget

% share of Personnel

to total provincial

expenditure

% share of personnel

to total Personnel

expenditure

2004/05: Actual as at November

2004

Year-on-year growth

19

Payments for Capital Assets Trends (Capital Expenditure)

20

• Provinces have spent R6,6bn or 47,2% of R13,9bn adjusted capital budgets

– Increase of R1,5bn or 30% to comparative spending during last year

• Low rate of capital spending in LIM (36,4%) and FS(38,4%)

• EC (58%) and MPU (57,8%) reflects the highest rate of capital spending

Payments for Capital Assets

21

• Provinces have spent R1,7bn or 42,1% of R4,1bn adjusted capital budgets

– Increase of R1,1bn or 59,9% to comparative spending during last year

• Lowest rate of capital spending in LIM (27,9%) and FS(35,3%)

• MPU (58,4%) and KZN (49%) reflects the highest rate of capital spending

• EC and MP overspending while 6 depts are underspending and one breaking even

Payments for Capital Assets - HEALTH

22

Payments for Capital Assets

Table 20: Provincial Capital (Payments for Capital Assets) Expenditure as at November 2005

Eastern Cape 1 622 195 1 602 520 940 359 58,0% – 19 675 1,2% 4,3% 14,3% 1 164 158 -19,2%

Free State 685 190 615 966 262 915 38,4% – 69 224 10,1% 2,9% 4,0% 239 006 10,0%

Gauteng 2 084 116 2 096 033 949 163 45,5% -11 917 – -0,6% 4,5% 14,4% 658 563 44,1%

Kw aZulu-Natal 3 538 331 3 258 811 1 689 549 47,7% – 279 520 7,9% 5,8% 25,7% 1 100 530 53,5%

Limpopo 1 596 161 1 594 843 581 300 36,4% – 1 318 0,1% 3,3% 8,8% 725 156 -19,8%

Mpumalanga 1 311 057 1 248 314 757 549 57,8% – 62 743 4,8% 7,6% 11,5% 288 505 162,6%

Northern Cape 348 561 317 951 145 782 41,8% – 30 610 8,8% 4,3% 2,2% 129 279 12,8%

North West 1 215 597 1 206 597 471 420 38,8% – 9 000 0,7% 4,2% 7,2% 335 383 40,6%

Western Cape 1 541 817 1 496 887 779 352 50,5% – 44 930 2,9% 6,0% 11,8% 420 013 85,6%

Total 13 943 025 13 437 922 6 577 389 47,2% -11 917 517 020 3,6% 4,8% 100,0% 5 060 592 30,0%

Net 505 103

% share of Capital to

total provincial

expenditure

% share of Capital to

total Capital

expenditure

2004/05: Actual as at November

2004

Year-on-year

growth

Actual as % of adj budget

(Over) Under

% (Over) / under of

adj budget

R thousand

Adjusted budget

Projected Outcomes

Actual as at November

2005

23

Table 22: Provincial Capital Expenditure: Health as at November 2005

Eastern Cape 483 944 485 176 204 853 42,3% -1 232 – -0,3% 21,8% 5,1% 292 121 -29,9%

Free State 255 248 194 781 90 154 35,3% – 60 467 23,7% 34,3% 4,5% 110 159 -18,2%

Gauteng 847 096 837 542 348 602 41,2% – 9 554 1,1% 36,7% 5,8% 58 220 498,8%

Kw aZulu-Natal 1 031 952 910 952 505 809 49,0% – 121 000 11,7% 29,9% 7,7% 220 722 129,2%

Limpopo 506 089 495 166 141 156 27,9% – 10 923 2,2% 24,3% 5,0% 208 187 -32,2%

Mpumalanga 265 398 273 378 154 867 58,4% -7 980 – -3,0% 20,4% 8,9% 33 906 356,8%

Northern Cape 155 117 145 528 60 391 38,9% – 9 589 6,2% 41,4% 8,8% 33 197 81,9%

North West 207 090 207 090 83 859 40,5% – – 0,0% 17,8% 4,5% 100 447 -16,5%

Western Cape 352 748 309 587 140 113 39,7% – 43 161 12,2% 18,0% 3,9% 24 744 466,3%

Total 4 104 682 3 859 200 1 729 804 42,1% -9 212 254 694 6,0% 26,3% 5,9% 1 081 703 59,9%

Net 245 482

% share of Health

Capital to total

Capital expenditure

% share of Capital to

total Health expenditure

2004/05: Actual as at November

2004

Year-on-year growth

Actual as % of adj budget

(Over) Under

% (Over) / under of

adj budget

R thousand

Adjusted budget

Projected Outcomes

Actual as at November

2005

Payments for Capital Assets - Health

24

Conditional Grants

25

Office Of The Premier

Provincial Legislature

Health

Social Development

Roads And Public Works

Education

Housing,Local Government And Traditional Affairs

Agriculture

Economic Affairs,Environment And Tourism

Transport

11

Provincial Treasury

13

Safety And Liaosn

16

17

18

Conditional Grants : Flow of information

Provincial TreasurySubmit a report within 22 days after the end of each month as part of consolidated monthly

report.

National Treasury

National departmentSubmit a report within 20 days after

the end of each month.

Provincial departmentSubmit a report within 15 days after the end of each month.

Legislation

* Public Finance Management Act.

* Division of Revenue Act.

Conditional Grants – Flow of Info

26

Conditional Grants

• Conditional grant allocations total R74,6bn (2005 DoRA)

– Social assistance grants making up the bulk at R55,9bn

• Reported expenditure excludes Schedule 4 grants such as the NTS Grant and Provincial Infrastructure grant

These grants are included in “general” provincial expenditure

• Specific grants that show low spending include:

- Hospital Revitalisation (Health) (44,3%)

- Hospital Management and QI (Health) (46,6%)

- Integrated Nutrition prog (53,6%)

27

Conditional Grants

Table 25: Provincial Conditional Grants Expenditure as at November 2005

Agriculture 290 000 – 290 000 232 000 35 860 89,7%1 Comprehensive Agricultural Support Programme Grant 250 000 250 000 200 000 103 263 41,3%

Land Care Programme Grant: Poverty Relief and Infrastructure Development40 000 40 000 32 000 35 860 89,7%

Education 1 048 444 – 1 048 444 786 337 759 507 72,4%

HIV and Aids (Life Skills Education) Grant 136 293 136 293 102 222 129 029 94,7%

National School Nutrition Programme Grant 912 151 912 151 684 115 630 478 69,1%

Health 8 665 835 – 8 665 835 5 722 919 1 336 782 54,9%

Comprehensive HIV and Aids Grant 1 135 108 1 135 108 684 942 710 418 62,6%1 Health Professions Training and Development Grant 1 520 180 1 520 180 1 013 451 1 007 515 66,3%

Hospital Management and Quality Improvement Grant 150 342 150 342 112 760 69 990 46,6%

Hospital Revitalisation Grant 1 027 427 1 027 427 676 792 490 184 47,7%

Integrated Nutrition Programme Grant 123 392 123 392 95 379 66 190 53,6%

National Tertiary Services Grant 4 709 386 4 709 386 3 139 595 3 116 874 66,2%

Transferred from

National to province

Actual as at November

2005

Actual as % of budget ( excluding provincial roll-overs)

R thousand

Division of Revenue

Act, No. 1 of 2005

Other Gazetted Amounts

Total available 2005/06

(excluding rollovers)

28

Conditional Grants - continuedHousing 4 867 876 – 4 867 876 3 538 327 3 048 222 62,6%

Integrated Housing and Human Settlement Development Grant4 843 480 4 843 480 3 518 722 3 017 130 62,3%

Human Settlement and Redevelopment Grant 24 396 24 396 19 605 31 092 127,4%

Land Affairs 8 000 – 8 000 – – 0,0%

Land Distribution: Alexandra Urban Renew al Project Grant 8 000 8 000 – – 0,0%

National Treasury 3 730 773 – 3 730 773 2 132 176 1 412 182 37,9%1 Provincial Infrastructure Grant 3 730 773 3 730 773 2 132 176 1 412 182

Social Development 55 931 759 – 55 931 759 38 634 573 35 237 056 63,4%

HIV and Aids (Community-Based Care) Grant 138 391 138 391 124 551 85 064 61,5%1 Integrated Social Development Services Grant 388 000 388 000 204 017 93 325 24,1%

Social Assistance Administration Grant 3 382 055 3 382 055 2 254 703 1 743 394 51,5%

Social Assistance Transfers Grant 52 023 313 52 023 313 36 051 302 33 408 598 64,2%

Sport and Recreation South Africa 24 000 – 24 000 20 183 15 193 63,3%

Mass Sport and Recreation Participation Programme Grant 24 000 24 000 20 183 15 193 63,3%

Total 74 566 687 – 74 566 687 51 066 515 40 432 620 63,2%

1) Spending of these grants is subsumed in the spending of a range of programmes across provincial departments and therefore no reporting is required on these grants.

29

Conditional Grants

• 5 or more provinces have spent less than 50% for the following grants:

– Hospital Revitalisation (Health)

– Hospital Management and Quality Improvement (Health)

• However the majority of grants reflects spending within the 50% and 70% range against the DORA.

30

Conditional GrantsTable 26: Selected Conditional Grants Spending Rate as at November 2005

Agriculture

Land Care Programme Grant: Poverty Relief And Infrastructure Development2 GT, NW, 3 EC, KZN, LIM, 4 FS, MPU, NC, WC,

Education

Hiv And Aids (Life Skills Education) 3 LIM, NW, WC, 3 FS, MPU, NC, 3 EC, GT, KZN,

National School Nutrition Programme 0 5 FS, GT, LIM, NW, WC, 4 EC, KZN, MPU, NC,

Health

Comprehensive Hiv And Aids 3 FS, LIM, NC, 3 EC, MPU, NW, 3 GT, KZN, WC,

Hospital Revitalisation 5 EC, FS, LIM, NW, WC, 2 KZN, MPU, 2 GT, NC,

Integrated Nutrition Programme 3 NC, NW, WC, 6 EC, FS, GT, KZN, LIM, MPU, 0

Hospital Management And Quality Improvement6 FS, GT, KZN, LIM, NC, WC, 2 EC, NW, 1 MPU,

Housing

Integrated Housing And Human Settlement Development Grant0 7 EC, FS, GT, KZN, LIM, MPU, WC, 2 NC, NW,

Human Settlement And Redevelopment1 GT, 0 3 FS, LIM, WC,

Land Affairs

Land Distribution: Alexandra Urban Renew al Project1 GT, 0 0

Social Development

Social Assistance Administration 5 FS, GT, LIM, MPU, WC, 4 EC, KZN, NC, NW, 0

Social Assistance Transfers 0 8 EC, FS, GT, KZN, LIM, NC, NW, WC, 1 MPU,

Hiv And Aids (Community-Based Care)3 FS, KZN, WC, 3 EC, NC, NW, 3 GT, LIM, MPU,

Sport and Recreation South Africa

Mass Sport And Recreation Participation Programme1 NW, 4 GT, LIM, NC, WC, 4 EC, FS, KZN, MPU,

1) Percentages represent actual expenditure of main budget as published in the Division or Revenue Act, 2005 (Act No.1 of 2005)

Number of provinces spent less than 50%

Number of provinces spent between 50% and 70%

(inclusive)

Number of provinces spent more than 70%

31

Important dates and submissions

32

• 2005/06 Financial Year:

– 3rd Quarter (as at 31 December 2005)

30 January 2006

– 4th Quarter (as at 31 March 2006) 28 April 2006

Publication Dates for Provincial S32 Reports

33

• Practice Note 3 of 2005 (issued with effect from 01 August 2005):– National departments administering conditional grants

are required to table QPRs (including both financial and non-financial information) with the SCOF in the NCOP at the end of each quarter in line with the requirements of Sections 19(1)(c) and 21(2)(d) of the Act, Grant Frameworks and Treasury Regulation 5.3

– Departments are required to provide the NT with copies of the reports tabled at SCOF in NCOP. The quarterly reports for each quarter should be tabled by the dates provided

– The dates are as follows: • Third Quarter: 07 February 2006 • Fourth Quarter: 08 May 2006

Proposed Dates for QPRs

34

Detail on Conditional Grants by Grant Type

35

Health GrantsNational Tertiary Services Grant

• Objective (Schedule 4 Grant):– To fund national tertiary delivery in 27 hospitals across the

nine provinces, as identified by the national department of Health (DOH), in order to ensure equitable access to basic tertiary health services by all South Africans

• 8 month Expenditure:– Spending of this grants is subsumed in the spending of a

range of programmes and therefore no reporting is required– Health spent R3 117 m or 66,2% of the R4 709 m allocation

– Transfers amounted to 66,7%

– Highest: MPU 88,4%; KZN 73,5% and NC 66,7%– Lowest: LIM 28,7% and NW 48,9%

• Service Delivery Outcome:– Department / Sector to respond

36

Health GrantsHealth Professions Training and Development Grant

• Objectives (Schedule 4 Grant):– Support provinces to fund service costs associated with

training of health professionals– Enable shifting of teaching activities from central hospitals to

regional and district facilities– Development and recruitment of medical specialist in under-

served provinces

• 8 month Expenditure:– Spending of this grants is subsumed in the spending of a

range of programmes and therefore no reporting is required– Health spent R1 008 m or 66,3% of the R1 520 million allocation– Transfers amounted to 66,7%

– Highest: FS 84,7%; NW 72,1% and GT 66,7%– Lowest: EC 49,9% and MPU 64,7%

• Service Delivery Outcome:– Department / Sector to respond

37

Health GrantsComprehensive HIV and Aids Grant

• Objective (Schedule 5 Grant):– To Enable the health sector to develop an effective response to

the HIV and Aids epidemic and other matters

• 8 month Expenditure:– Health spent R710,4 m or 62,6% of the R1 135 m allocation– Transfers amounted to 59,6%– Highest: KZN 78,6%; GT 75,5% and WC 71,7%– Lowest: LIM 36,8% and NC 41,8%

– Service Delivery Outcome:– Department / Sector to respond

38

Health GrantsHospital Revitalisation Grant

• Objective (Schedule 5 Grant):– To transform and modernise infrastructure and equipment in

hospitals in line with national policy and to achieve a sustainable infrastructure from which modern, equitable and sustainable services can be delivered

• 8 month Expenditure:– Health spent R490,2 m or 47,7% of the R1 027 million

allocation– Transfers amounted to 61,2%– Highest: GT 359,6%; NC 79,3% and MPU 67,3%– Lowest: FS 25,4% and EC 30,2%

• Service Delivery Outcome:– Department / Sector to respond

39

Health GrantsIntegrated Nutrition Programme Grant

• Objective (Schedule 5 Grant):– To implement integrated nutrition activities aimed at

improving the nutritional status of all South Africans

• 8 month Expenditure:– Health spent R66,2 m or 53,6% of the R123,4 m allocation– Transfers amounted to 77,3%– Highest: MPU 62,8%; GT 60,7% and EC 54,5%– Lowest: WC 43,8%; NC 48,4%; and NW 49,2%

• Service Delivery Outcome:– Department / Sector to respond

40

Health GrantsHospital Management and Quality Improvement Grant

• Objective (Schedule 5 Grant):– To transform hospital management and improve quality of

care in line with national policy

• 8 month Expenditure:– Health spent R70 m or 46,6% of the R150,3 m allocation– Transfers amounted to 75% – Highest: MPU 142,7%; NW 56,4% and EC 50,2%– Lowest: GT 12%; KZN 30,8% and WC 33,4%

• Service Delivery Outcome:– Department / Sector to respond

41

THANK YOU

THANK YOU

THANK YOU